The PSPgo is best described as a bold attempt by Sony to move to a digital-only distribution model that in the end completely failed. Gamers knew it within days of the launch, retailers had already made up their mind, and now finally, some 18 months after its initial launch, Sony is throwing in the towel it seems.

Although not officially confirmed yet, a Sony Shop employee in Japan has updated his blog stating that Sony has stopped shipments of PSPgo to stores in the region. In fact, production of the PSPgo is thought to have been completely stopped. The news comes from his store manager who talked with Sony about future stock.

The PSPgo no longer appears on the Sony Style Japan website, bu the PSP-3000 remains. So no online sales, and now stocks in stores look to be the last remaining handhelds available. If you really want one, buy now before it’s too late. We highly recommend getting the PSP-3000 instead, though, just for the wealth of games available on UMD both new and used.

It makes sense to stop production now for two reasons. The first is that Sony has the Xperia Play smartphone/gaming portable launching soon. Secondly, it needs to prepare for production of the PSP 2 thought to release late this year or in early 2012.

The PSP-3000 is still selling, so production of that model will likely continue beyond the introduction of the PSP 2, how long after will depend on the uptake of the new device and continued sales of the PSPl and UMD games. If it’s anything like the PS2 console, Sony would do well to keep stock flowing for the foreseeable future.